NCDEX Chana under long liquidation; Support seen at 4035
Commodity Online | May 20 2020
UPDATED 12:10:10 IST

NCDEX Chana under long liquidation; Resistance seen at 5001

MCX Cotton under fresh selling; Support seen at 19920

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NCDEX Turmeric under long liquidation; Support seen at 5494

NCDEX Mustard Seed under short covering; Resistance seen at 6083

Technically Chana market is under long liquidation as market has witnessed drop in open interest by 1.25% to settled at 30120 while prices down 43 rupees.

Now NCDEX Chana is getting support at 4035 and below same could see a test of 3988 levels, and resistance is now likely to be seen at 4129, a move above could see prices testing 4176.

Chana yesterday settled down by 1.04% at 4081 on profit booking after prices seen supported after update that due to heavy moisture.

In recent session prices seen supported due to supply shortages as many cotton seed crushing units are closed.

Andhra Pradesh aims to reduce the area under cotton in the coming 2020-21 (Jul-Jun) kharif season to 544,000 ha from 654,000 ha last year.

Local textile mills and ginners were in distress. Many mills were closed up till now due to the building up of inventory while some mills were working partially but they were near closing.

The government has decided to exempt cottonseed oil cake from 5 percent General Sales Tax. Punjab has registered a record production of cotton at 43.25 lakh quintals in 2019-20 season even as the procurement of the crop is still in its last stage.

According to the data procured from the Punjab State Agricultural Marketing Board, the state has witnessed a jump of over 26% over the production of 34.68 lakh quintals recorded during the 2018-19 season.

The Cotton Corporation of India (CCI) has announced bulk discount for cotton bales with it from 2018-2019 and 2019-2020 cotton seasons.

The CCI’s operations under which the corporation procures cotton from farmers at the government declared Minimum Support Price (MSP) of Rs 5,550 per quintal continues till September.

Trading Ideas:
--Chana trading range for the day is 3988-4176.
--Chana dropped on profit booking after prices gained as there are concerns regarding shortage of labour, transport, led to significant drop in arrivals.
--The acreage of the crop in the recently ended week is reported at 107.21 lakh hectares.
--According to NAFED, The government has procured nearly about 2.5 Lakh metric tonnes of Chana.
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4103.35 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1 11300.00
Coconut Oil 1 20700.00
Arecanut 2 3500.00
Sugar 20 3430.00

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